Suppose you have an equally$-$weighted portfolio consisting of two securities$.$ One is a corporate bond and the other is a share of stock in the Delta Corporation. As of the beginning of the year, the bond has a coupon rate of $6\%,$ matures $5$ years from today and has a yield to maturity $($YTM$)$ of $4\mathrm{.}73$ percent. The Delta stock pays a constant dividend of $95$ cents per share which is expected to remain the same into the foreseeable future and is currently selling for $$41\mathrm{.}30.$ Economists forecast there is a $40$ percent chance the economy will go into a recession and a $60$ percent chance it will improve slightly. In the event the economy goes into a recession, analysts expect the bonds YTM to decline to $4$ percent by year end. The recession is expected to increase the current required return on Delta stock by $20\%.$ In the event the economy improves, analysts expect the bonds YTM to remain at $4\mathrm{.}73$ but the required return on the Delta stock is expected to decrease by $10\%.$ Face value of bond is $$100\mathrm{.}00$

a$.$ Compute the current price of both securities$.$

b$.$ Construct a table showing the expected price of both securities under a recession and normal state of the economy.

c$.$ Reconstruct the table in part b to show the expected return of both securities under a recession and normal state of the economy.

d$.$ Compute the expected return you would earn on your portfolio over the year